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Announcing the Issuance of ACRSD Final Decision Convicting Violators of the Capital Market Law and its Implementing Regulations

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (3088/L.S/2023) of 1445 H., dated 03/04/1445 H., corresponding to 18/10/2023, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Faisal bin Abdulaziz bin Abdullah Albanyan, Sultan bin Abdulaziz bin Abdullah Albanyan, Hind bint Muhammad bin Abdulrahman bin Asaker, Abdullah bin Abdulaziz bin Abdullah Albanyan, Reem bint Abdulaziz bin Abdullah Albanyan, Fahad bin Abdulaziz bin Abdullah Albanyan, Nouf bint Abdulaziz bin Abdullah Albanyan, and Abdulaziz bin Abdullah bin Issa Albanyan.

The decision concluded with the following:

  1. The conviction of the abovementioned individuals for violating Article (49) of the Capital Market Law, as well as Article (2) of the Market Conduct Regulations, when conducting during the period of 11/02/2020 and 15/11/2020 a series of procedures and transactions during their trading on the shares of Al Kathiri Holding Co. and Anaam International Holding Group, that resulted in an increase of their ownership percentage of shares of the two companies without disclosing such big percentage to the shareholders and to the public. Then, after offering the priority rights, they exited the shares and sold their share ownership, without announcing this to the public. The synchronized trading transactions of the convicted individuals and the increase of their ownership percentage in both companies had positively reflected on the prices of the shares of the two companies, until the convicted individuals exited the shares of the two companies, hence negatively affected the prices of the shares of the two companies. Such acts resulted in misguiding the investors in the Exchange and created a false and misleading impression regarding the securities of the two mentioned companies.
  2. The conviction of Sultan bin Abdulaziz bin Abdullah Albanyan, Hind bint Muhammad bin Abdulrahman bin Asaker, Abdullah bin Abdulaziz bin Abdullah Albanyan and Fahad bin Abdulaziz bin Abdullah Albanyan for violating Article (49) of the Capital Market Law, as well as Article (2) of the Market Conduct Regulations, when they entered purchase orders aiming to affect the share price, and entered purchase orders in the closing bid aiming to achieve a higher closing price for the shares of Al Kathiri Holding Co. and Anaam International Holding Group, during the period between 05/12/2019 and 15/11/2020, using their portfolios and the portfolios of the minor sons of Fahad bin Abdulaziz bin Abdullah Albanyan. Such acts and practices constitute fraud and manipulation and created a false and misleading impression regarding the securities of the two companies

(To view the dates of trading and securities in relation to the violations, click here).

The decision included the imposition of a number of sanctions upon them according to the following:

First: Faisal bin Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
  2. Obliging him to pay to the CMA account the amount of (SR. 27,190.60) twenty-seven thousand one hundred ninety Saudi Riyals and sixty Halalas, against the illegal gains achieved in his portfolios.

Second: Sultan bin Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon him amounting to (SR. 600,000) six hundred thousand Saudi Riyals.
  2. Obliging him to pay to the CMA account the amount of (SR. 33,487,269.10) thirty-three million four hundred eighty-seven thousand two hundred sixty-nine Saudi Riyals and ten Halalas, against the illegal gains achieved in his portfolios.
  3. Banning him from trading through purchase of shares in companies listed in the Saudi Exchange directly for himself or on behalf of others for a period of One year, except trading through investment funds with financial institute.

Third: Hind bint Muhammad bin Abdulrahman bin Asaker:

1.     Imposing a fine upon her amounting to (SR. 400,000) four hundred thousand Saudi Riyals.

2.     Obliging her to pay to the CMA account the amount of (SR. 39,198,269.40) thirty-nine million one hundred ninety-eight thousand two hundred sixty-nine Saudi Riyals and forty Halalas, against the illegal gains achieved in her portfolios.

3.     Banning her from trading through purchase of shares in companies listed in the Saudi Exchange directly for herself or on behalf of others for a period of One year, except trading through investment funds with financial institute.

Forth: Abdullah bin Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon him amounting to (SR. 600,000) six hundred thousand Saudi Riyals.
  2. Obliging him to pay to the CMA account the amount of (SR. 11,427,989.50) eleven million four hundred twenty-seven thousand nine hundred eighty-nine Saudi Riyals and fifty Halalas, against the illegal gains achieved in his portfolios.

4.     Banning him from trading through purchase of shares in companies listed in the Saudi Exchange directly for himself or on behalf of others for a period of One year, except trading through investment funds with financial institute.

Fifth: Reem bint Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon her amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
  2. Obliging her to pay to the CMA account the amount of (SR. 73,574.80) seventy-three thousand five hundred seventy-four Saudi Riyals and eighty Halalas, against the illegal gains achieved in her portfolios.

Sixth: Fahad bin Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon him amounting to (SR. 7,200,000) seven million two hundred thousand Saudi Riyals.
  2. Obliging him to pay to the CMA account the amount of (SR. 207,564,443.50) two hundred seven million five hundred sixty-four thousand four hundred forty-three Saudi Riyals and fifty Halalas, against the illegal gains achieved in his portfolios and the portfolios of his minor sons.
  3. Banning him from trading through purchase of shares in companies listed in the Saudi Exchange directly for himself or on behalf of others for a period of Five year, except trading through investment funds with financial institute.  

Seventh: Nouf bint Abdulaziz bin Abdullah Albanyan:

  1. Imposing a fine upon her amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
  2. Obliging her to pay to the CMA account the amount of (SR. 147,808.90) one hundred forty-seven thousand eight hundred eight Saudi Riyals and ninty Halalas, against the illegal gains achieved in her portfolios.

Eight: Abdulaziz bin Abdullah bin Issa Albanyan:

  1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
  2. Obliging him to pay to the CMA account the amount of (SR. 883,237.20) eight hundred eighty-three thousand two hundred thirty-seven Saudi Riyals and twenty Halalas, against the illegal gains achieved in his portfolios.

 

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint).

However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action. ​